Crash Course in Obamanomics

© ignoranceorapathy.com 11/13/2008

History does repeat itself, over and over again for those not willing to study the mistakes that were made.

In the final few days leading up to the election on Nov. 4th 2008 the stock market held a few pitiful brief rallies. Curious was the cause of these short-lived bottle rocket rallies. I could see no fundamental shift in the market or the economic environment. There were no underlying fundamentals that caused the market to rise. Or was there? In the last few days leading to the election some renowned pollsters showed John McCain pulling up and closing the gap with Obama. In fact after the recording came out of the interview Obama gave in which he claimed he would bankrupt the coal industry the whole state of West Virginia seemed to change its collective mind. The state, a Democratic stronghold went to McCain. (see Obama’s Grand Climate Change Plan for video and details)

Follow up:

On Election day, now remember the markets close at 4:00 P.M. Eastern Time, well before the polls closed in any states, some exit polling data indicated that support for McCain was much better than expected. The Dow Jones Industrial Average closed up 305 points at 9625.28, rather impressive one-day gain. In fact world markets all rose Monday night Tuesday morning, well before any election returns were actually counted.
(see LA Times World Markets Surge as America Votes)

Since Tuesday night Nov. 4th the Dow Jones Industrial Average has sank to the closing level on Wednesday Nov 12th of 8282.66, for those of you who went to public school that is a 1342.62 point drop in 8 days, only 6 of which were trading days.

In that time we have heard many reports from Obama insiders, from Obama himself and even the MSM that he intends to rescind 200 of President Bushes Executive orders, the first of which is the repeal of the Off Shore Drilling Ban. Obama and Nancy Pelosi plan to allow the Bush Tax Cuts to expire, raising taxes across the board. Obama has made clear he has no intentions of governing from the center but indeed from the far socialist left. Obama has made it clear his Marxist redistribution of wealth and economics from the bottom up plans are in full dungeon to be implemented as soon as possible after he takes office.

In researching market trends since the election I find two things very disheartening. It leads me to believe you are now seeing the start of the Obama Recession.

1) The failed policies of higher taxes and more social spending do not reinvigorate a weak or failing economy. FDR tried it during the Great Depression, every attempt merely and tragically sent us further into the depression and prolonged the suffering of millions of Americans. Government cannot save the economy, but they can sure wreck it with bad policy. It was government interference in the mortgage market that caused the housing bubble. (see The Diversity Recession, or How Affirmative Action Helped Cause the Housing Crisis)
Lyndon Johnson’s great society gave us the welfare state we live in today, if that brainstorm was working then why are there still poor people today? The policies of the great society and the Carter administration produced double-digit inflation, interest rates and unemployment.
Reagan came along in 1980 and cut taxes and started shrinking the size and scope of the Federal Government, allowing for the longest period of peace and prosperity and the greatest amount of growth in our history.

2) Democrats in Congress are already starting to use the current market and economic situation as an excuse to grow the power, size and influence of the Federal Government. The plans to make more Americans dependant on government are in full swing.

Investors know this, the markets do not reflect the past, they foretell the future. The prices of Stocks are what is referred to as “forward looking”. That is to say the price of a stock today is reflective of the fundamentals and news about the company as they apply to the companies performance in the near or medium term. Usually the markets value a stock 2 – 12 months ahead of the current conditions. Your buying a stock at a price that is based on what the company should be worth in the near future. In the past two weeks the markets are making some dire predictions about the future of our economy and our system of free market capitalism in general.

Hillary Clinton wants to grow government right now, she does not even want to wait for January 20th and the Obamassiah. ( see Letter to President Bush calling for new stimulus) I guess she feels if she waits then Obama will get the credit for this new socialist expansion of government.

Treasury Secretary Paulson was given a mandate by Congress to use the $700 Billion Bailout / Cover-up bill money to buy up bad paper the banks were holding, due to the lack of oversight by Democrats in Congress of Fannie and Freddie, (see the video at Senate Bill Full of Pork and Other Chops) so that the banks could start lending money again. Instead Sec. Paulson is now using the money to force the Nationalization of Banks (see Fed Begins Process of Seizing Banks) and he is seeking to stretch that even further to start nationalizing other private businesses and industries as well.
Marx and Lenin would be so proud, using taxpayer money to buy equity stakes in private business which as some point in time the government could then exercise to take complete control of those private businesses.

I am not blaming the current market conditions or the housing crash on anyone as a deliberate act in order to seize power and grow government. It is curious as to the timing of all of this, I do remember a certain business news cable channel attempting to find a root cause of the sudden credit crisis. No event could be found to be the trigger.

I would not rule out that one political party has since been employing Alinsky concepts, using orchestrated crisis to bring about sudden and dramatic change in our form of government.

It is time for Americans to stop feeling and start thinking.
Which party is in Washington attempting to use the current economic situation to their advantage? Which party wants to make more and more of us dependant on government programs and handouts?

Not one clause, amendment, paragraph or phrase in our Constitution grants the power to the Federal Government to control the economy, private business or redistribute wealth.

Under this new socialist / Marxist regime we are going to see America shrink from being a world economic super power to being just another failed socialist state.

From the moment our nation was founded it was understood Capitalism and a free market economy would spur growth and prosperity. It would enable hard working people to dream big dreams and then to accomplish them. It would make possible the idea that your children could have a better life than you do. Capitalism is rooted in the idea that if you work hard and take risks, if you succeed, then you will reap the rewards. That is the incentive.

Under our new socialist regime there is no reward for hard work or risk, as wealth will be redistributed to those the government feels are deserving. The government has to make things “fair”. Even though the ones on the receiving end have not worked for the reward, have not sacrificed for the benefits, and have not suffered through the really though choices.

“from each according to their means, to each according to their need”

If Obama and the rest of the Marxist democrats really cared about working people, as they claim, you would see them on television tomorrow making a statement that on January 21st 2009 they would begin the process of repealing the 26th amendment, to begin work to repeal the entire federal tax code and to implement the Fair Tax. To make the Federal tax system fair to all Americans and to abolish the IRS so no working American would ever have to live in fear of their Storm Trooper tactics. This would make the U.S. a haven for business and create countless jobs here at home while simultaneously removing years of oppression by the Federal government on American business and families.

But sadly you will not see this from them.

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